Permanence pact
- Name of the instrument - Local language
- Pacto de permanencia
- Name of the instrument - English translation
- Permanence pact
- Scheme ID
- 263
- Country
- Spain
- Reporting year
- 2020
- Type of instrument
- Payback clause
- Sub-type of instrument
- Payback clauses are possible with no explicit limitations
- Type of entry
- Single instrument
- Short description
Following the Spanish Workers' Statute (article 21), employers and employees can agree on a payback clause. Thus, in compensation for employer-provided/financed training, employees and employers may sign a written agreement where the employees commit themselves to stay in the company for an agreed period (but no longer than 2 years). If the employee leaves the company before the agreed time, the employer is entitled to compensation for damages.
- Level of operation
- National
- Name of a part of the country
- Not applicable
- Name of the region (for regional instruments)
- Not applicable
- Name of the sector (for sectoral instruments)
- Not applicable
- Relevance
- Further instrument
- Legal basis
- Workers' Statute ('Estatuto de los Trabajadores'), 1980
- Objective(s) and target(s)
- The objective of the permanence pact is to protect the employer when he/she has provided and/or financed training for the employee, in case the employee leaves the company before the period of time agreed between the two of them.
- Year of implementation
- 1980
- Operation/management
- The permanence pact is a private agreement signed in written form between the employer and the employee. The Workers' Statute (main Spanish law regulating labour relations) regulates this measure very limitedly, so, in practice, it just depends on employers' and employees' personal interests.
- Eligible group(s)
- All employers and employees are eligible. That is, employees who have received training provided/financed by the employer.
- Group(s) with preferential treatment
- No preferential treatment
- Education and training eligible
- According to legal provisions, training provided to the employee must be understood as professional specialisation, aimed at launching particular projects or carrying out specific work. In practice, this means that training cannot be just ordinary training, but singular training which causes extraordinary costs to the employer, and which provides the employee with higher opportunities to find a job than other work colleagues. Also, the employer should suffer a real negative impact due to the departure of the employee.
- Source of financing and collection mechanism
- The permanence pact is based exclusively on a private agreement between employer and employee
- Financing formula and allocation mechanisms
- The permanence pact is based exclusively on a private agreement between employer and employee. So it depends on each individual agreement between employer and employee.
- Eligible costs
- The legal framework does not provide details on this. The permanence pact is based exclusively on a private agreement between employer and employee. Each situation may be different.
- Volumes of funding
- There is no information on the number of beneficiaries or take-up of the permanence pact. In practice, the permanence pact is generally signed with managers or employees with high promotion prospects and accessing managerial positions. Also, it is more common in knowledge intensive and strategic sectors.
- Beneficiaries/take up
- Not available
- Organisation responsible for monitoring/evaluation
- Not applicable
- Most relevant webpage - in English
- https://www.boe.es/buscar/pdf/1995/BOE-A-1995-7730-consolidado.pdf
- Recent changes
No recent amendment
Recent changes in response to COVID-19
No changes
- Sources
- Law on Worker's Statute (Art. 21), https://www.boe.es/buscar/pdf/1995/BOE-A-1995-7730-consolidado.pdf https://www.boe.es/buscar/act.php?id=BOE-A-2015-11430
On this page:
- Short description
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Relevance
- Legal basis
- Objective(s) and target(s)
- Year of implementation
- Operation/management
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
- Source of financing and collection mechanism
- Financing formula and allocation mechanisms
- Eligible costs
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
- Most relevant webpage - in English
- Recent changes
- Sources